In my experience as a host and guest on VRBO, I don't think VRBO is as well situated for by the room rentals as its competitors.Pros of renting monthly will be less turnover, less wear & tear, and less admin work on your end (think guest communication, coordination, etc.)Cons of renting monthly will be less gross rental income if renting by the month and not by the night and the fact you'll have to put up with disruptive/annoying guests (if any) for longer.Overall, I think having monthly rentals would be a better setup for a rent-by-room situation.

I don't want to tear out, the cost is too much.

If tenants tear the place apart and in that area I have had some epic stories of tenant damage, floor joists busted and walls falling down epic. 

Tearing down a wall and plumbing/electrical-possibly. 

They aren't very different, but some key differences are as follows: Memphis has a higher crime rate (more than 2x higher), population growth is almost non-existent, but the home prices are more affordable (roughly $75k lower than Columbus, OH) and the climate is better than that of Columbus, OH (which means less wear and tear on the property as a result of harsh winters, etc.). 

I think I have the right to tear down the fence, and even cut the concrete that the neighbors poured up to the fence on their side, since all of that is on our land. 

We can't guarantee returns but we sure as hell will expend all the blood, sweat and tears to make darn sure it does happen.

The house is ok as a rental for now but the highest and best use is to tear it down and build new.

You take money for anything above normal wear and tear.

Host fees (if listing with Airbnb, VRBO, etc), regular advertising fees, STR permit fees, utilities, cleaning, TV/Cable/entertainment, internet, basic toilet/cooking supplies, wear and tear on furniture, a security system, landscaping/lawn care, snow removal, trash removal, pool/hot tub care, propane for gilling/fire pits, and others depending on what amenities you may want to offer.